Homeowner’s Insurance Companies

[Lia Locarnini]

Hello!  I am interested in hearing what homeowner insurance companies you recommend for your rental properties and why?  I am looking to buy polices in TX, CA, and CO and have not been impressed with the companies I have contacted.  

[Jody Sperling]

I sell commercial insurance, so I have daily access to insurance producers. As the owner of two investment properties, I've been motivated to find the same answer, but it's more complex than "Who is the best?"

Each state has different carrier regulations which means each carrier is going to present slightly different pricing depending on the state.

The real question to ask is how you can find an agency with access to the most carriers and knowledge of the industry. I see on BP all the time people who accept the importance of investor-friendly accountants or real estate agents, but it seems like a lot of people have ignored insurance.

Here's a little trick to finding an independent agency that can pull you quotes from the most carriers. Type in your browser "[your state] Foremost Insurance Quotes". You're not looking for only Foremost quotes, but this search will provide you with a list of local insurance agencies that are independent and have larger appointments to work with more carriers.

Ask for multiple quotes. Ask about commissions. We've been trained not to broach the money topic, but who benefits from that? Not us. You will find, too often, that insurance agents ignore $10 to $20 a month on our pricing, justifying the higher price quote they give us because they can say it had superior coverages, when the real reason is that their commission with company x is twice that of company y.

Last thing: whatever you do, don't fall for the All State bundle. It could be the best price, but very likely is not. Companies that advertise, well, they have the money for Super Bowl commercials for a reason. Let's put it that way. That goes for Farmers and State Farm as well. Sorry discount double-check.

Best of luck to you!